Rarely few of us can say that global recession of 2008 has not affected us. It has hit every one of us, every business and every country in one way or the other. Everyone is its victim. Dubai was one such city that recently started enjoying the luxury life before 2008 but after the crunch, the life came to a halt in all its sectors tourism, Dubai real estate or any other. Once it was a dream place for everyone but after recession it has become a real hell for working class especially. People started flying away fromDubai and the ones who were left have nothing else to talk than recession in pubs, beech, gatherings and even in business meetings.
The main pillars of Dubai’s economy were tourism, Dubai real estate and finance sector that came to stand still. Banks started facing the debts and businesses started laying off their employees in thousands not in hundreds. Jobless expatriates were not in position to pay their loans so they started leaving Dubai with credit card payments, home and automobiles loans behind. Banks came under heavy debts so they stopped offering credit cards that worsened the situations even more. Dubai properties’ prices were at peak before 2008 but the prices dropped down in less than a year. It is because there were no large numbers of property buyers who can buy property.
People who know Dubai closely must know that developmental projects were halted and cranes were stopped. Dubai became not deserted but desolated once more. It seemed like government is quite and not taking any step to reform Dubai real estate sector or businesses over there. Government is taking effective steps towards recovery and it is looking like Dubai is on the way again. Now from the beginning of 2011 it seems like recession is over in Dubai.
The supply and demand of Dubai properties is still not balanced therefore the supply of both residential and commercial properties impacting negatively on the buying and sales prices and Dubai rental values. A single bedroom apartment that was once available at US $200,000 is available at US $110,000 or $120,000. The rental amount for one such apartment was US $30,000 per annum and now it stands at US $10,000. These are the figures before 2008 and after the beginning of 2011. The situation between these times was quite awful. Hotel rooms’ rental prices per night are also changed that is quite a good sign for all.
Locals, expatriates and foreigners all are feeling the positive vibes of recovery initiating the positive attitude that can ignite the recovery process.
